What is Web3 And Why Cryptocurrency Is Part Of It?

What is Web3 and why Cryptocurrency is part of It? The web (Internet) was once seen as a tool where a person could do anything

Updated on July 29, 2022
What is Web3 And Why Cryptocurrency Is Part Of It?

What is Web3, and why cryptocurrency is part of It? The web (Internet) was once seen as a tool where a person could do anything. But the creators of Web3 say that large corporations and proprietary algorithms will dominate it. One form found for this domain was the blockchain. A record that is linked through cryptography, a technique created to communicate securely without others knowing what you are saying. It is a way to obtain data privacy, where it is possible to discover the content only with a “key.”

What is Web3 And Why Cryptocurrency Is Part Of It?

What is Web3 And Why Cryptocurrency Is Part Of It?

A blockchain is formed by a list of blocks (blocks), where each one has a “cryptographic hash”. The encrypted information of the previous block. A kind of stamp with the date, time, and date of a transaction. As each block contains information about the previous one, a blockchain is resistant to data modifications. After creating an encrypted record for one of the blocks. So, it can only change the data of a block if all the data in the set is changed.

Web 3.0 and Its Predecessors

Web 3.0 is a vision of what the Internet of the near future could look like. However, to understand what Web 3.0 really means, you need to know its predecessors, Web 1.0 and 2.0.

Web 1.0

So, traditionally, Web 1.0 is the first generation of the worldwide network. Where websites were static primarily and used to transmit and browse for information. Web 1.0 was built on decentralized, community-managed protocols and user demographics were primarily content consumers rather than content creators.

Web 2.0

So, Web 2.0, the Internet we know and use today, contains more user-generated content and more use cases, including B. Social networks and online shopping. Web 2.0 is dominated by a centralized service run by companies that allow reviewing user-generated content. Storing data in a single database or repository. Examples of Web 2.0 sites are Facebook, Wikipedia, Twitter. Or payment companies that deny access to services that have the right to censor user content.

Web 3.0

Web3.0, also known as Web3, refers to the evolution of a global network with a decentralized blockchain ecosystem. That allows users to interact without worrying about a particular centralized data store. Simply put, in the age of Web 3.0, search engines, social media platforms. Marketplaces, etc… built on the blockchain, driven by cryptocurrencies; and new developments such as secure content and richer payment services. Will lead to.

Cryptocurrencies associated with Web 3.0 are called Web 3.0 tokens; or Web 3.0 cryptocurrencies. Ideally, Web 3.0 aims to use a distributed infrastructure to give users more control over their digital content. Shift their reliance on transactions and permissions from a central authority. This is a good sign for the creator economy, which can reward users financially by owning or providing value to digital data and online communities. There are many early Web 3.0 applications, but the Web 3.0 era will not reach its true potential until most applications and websites today and in the future adopt a distributed web infrastructure.

Blockchain and the Web3

As you have already noticed, blockchain is one of the key parts of Web3, and it is currently sustaining large markets such as cryptocurrencies and NFTs; where a virtual universe called the metaverse is exerting great influence on negotiations. As block list technology has a high level of security, cryptocurrencies were one of the first to take great advantage of it, and a great example of them is Bitcoin. Moreover, you can review the top web3 jobs to create a career on it.

Web3: Cryptocurrencies and NFTs

Cryptocurrencies are binary data designed to function as a medium of exchange. Each currency has a property stored in a “ledger,” a database that uses blockchain technology to protect transaction records. This type of currency is fiat (not backed by any commodity such as gold or silver) as it is not backed by; or convertible into commodities. They create value because people use them as a medium of exchange and agree on their value.

Today’s two biggest cryptocurrencies are Bitcoin and Ether, which emerged from an open-source blockchain platform called Etherum.

It uses Ethereum to create permanent decentralized applications that users can interact with. It is through it, for example, that NFTs ;(non-fungible tokens or non-fungible tokens) are traded; unique non-divisible tokens connected to some real-world item; or art that is sold as exclusive digital property.

When we say non-fungible tokens, it is not possible to have an amount of them, as they are unique. It is also impossible to divide them into installments like a cryptocurrency or our currency, where we have the cents. On the other hand, when it is possible to split and have several tokens of the same, you have something fungible; that is, cryptocurrencies are a kind of fungible token.

The NFTs and the Metaverse

Meta (formerly Facebook) created the metaverse a virtual world made up of various virtual environments; where people use avatars to communicate through virtual reality (VR) and augmented reality (AR) technology. In the midst of this, some items are interoperable, that is, tradable. This is where NFTs come in, which can sell as a unique digital property and buy with cryptocurrencies.

A great example of this growing interest in NFTs, the metaverse; and cryptocurrencies is Adidas which has partnered with big “players” from the NFT world to start a big marketing move in the digital world created by Meta.

https://twitter.com/adidasoriginals/status/1466443459951271939?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1466443459951271939%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.oficinadanet.com.br%2Finternet%2F39289-web3-entenda-nft-metaverso-criptomoedas

Web 3 or Web 3.0

Web 3 or Web 3.0, the new generation of the global Internet, gained strength recently and has a model based on the protocol used by cryptocurrencies. It is a bet to decentralize data control and provide users with anonymity.

The formula used by the creators of Web3 is the blockchain, a record linked through encryption, a technique used to ensure that communication takes place securely; without third parties knowing what is being said.

The idea is to offer a path with data privacy, where everyone has the “key” to their content. Thus, as its name suggests, it is formed by a chain of blocks; where each of the blocks has encrypted information from the previous one.

In this way, the technology becomes resistant to data modifications, because after creating the record for one of the blocks; it can only change its data if all others in the set change as well.

Gavin Wood introduced the concept of Web3 as we know it today in 2014; one of the creators of Ethereum; a decentralized platform focused on executing so-called “smart contracts.” His definition, given in an interview with Wired, is simple: “Less trust, more truth.”

Wood claims that the transparency and irrevocability of blockchain technology make it unnecessary to trust the “goodwill” of others on the Internet.

A document published by Ethereum

A document published by Ethereum describes this idea as follows: “Web2 refers to the version of the Internet that most of us use and are familiar with today. Companies that provide services in exchange for your personal rights are the ones that dominate the Internet. Web3 blocking in the context of Ethereum. It’s on the chain. It’s a decentralized application running on the Internet. With these apps, anyone can join without paying for personal information.

Ethereum, in addition to starting Ether, one of the most popular cryptocurrencies today, creates decentralized applications (DApps) in which users can interact. Through this platform, the commercialization of non-fungible tokens (NFTs) takes place, unique indicators of an exclusive digital property that cannot divide into installments or exchanged with others.

Cryptocurrencies and Web3

Cryptocurrencies, in turn, work as a medium of exchange for a set of binary data. Each of the coins has its property stored in a “ledger” called a ledger, which represents a database with blockchain technology. Uses the ledger to protect transaction records.

The Ethereum documentation also explains how this exchange works; “The cryptographic engine ensures that transactions cannot tamper; with once the transactions are verified as valid and added to the blockchain. Furthermore, the same mechanism also ensures that all transactions are properly “Permissions”; (no one should be able to send the user’s digital account details but themselves).

In practice, cryptocurrencies on Web3 represent the elimination of the need to leave the funds in the responsibility of a third party; such as a broker, to make transfers and manage the cryptocurrencies. Still, the owner can trade his assets and benefit from other applications.

One of the cryptos found on Web3 was created; as a new aspect of YouTube without the algorithms used to capture user information. According to a Money Times survey, the crypto asset that represents it rose 4,480% last year.

Opposition

Despite all the apparent benefits and large numbers of experts supporting the growth of Web 3.0; some still discredit it. Most users of the traditional Internet, especially those over 50; say they do not want the network to take the model of this new strand because they do not consider it reliable. So, this same audience is more skeptical about investing in cryptocurrencies due to a lack of knowledge and trust in transactions.

Many link the wave of Web3’s emergence with other previous decentralization movements that ended without consolidating. So, one of the most cited examples is the idea of producing a computer model that anyone could build and not controlled by anyone; a thesis overturned by Microsoft and Apple, who created an industry centered on proprietary operating systems.

Twitter founder Jack Dorsey took a stand against Web3 on the social network. He stated that users do not truly have control, but “VCs and their LPs do.”

“You do not own ‘web3. VCs (mode of investments used to support businesses through equity participation) and their limited partners do. So she will never escape your incentives. Ultimately, [Web3] is a centralized entity with a different label. Know what you’re getting yourself into….” Dorsey wrote.

So, in turn, Tesla and SpaceX CEO Elon Musk wrote on the same social network: “Has anyone seen Web3? I can not find it”. The statement is ironic about the lack of current concrete foundations for the emergence of the new network.

Web3 and cryptocurrency: Conclusion

Web 3.0 tokens hold immense potential to shape the future of the Internet. Now enter this exciting shift to Web 3.0 by simply buying or betting on Web 3.0 cryptocurrencies.